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To: Rocket Scientist who wrote (21184)	1/16/2001 6:59:41 PM
From: rf_hombre	Respond to of 29987

rs,....'the common PI and GSTRF s/h will be diluted by 90%, maybe, but they'll end up with a stake in a debt-free entity with (one hopes) a more rational marketing plan and pricing system, so better off than they are today, anyway.' 10 percent of a large share price would still amount to something. but by all means, we should get rid of the current management. history repeats itself, once as a tragedy and latter as a comedy. i would hate to get diluted only to see the same mistakes occur. ps, sorry i cannot capitalize. rfhombre

To: Rocket Scientist who wrote (21184)	1/17/2001 10:52:23 AM
From: RalphCramden	Read Replies (2) \| Respond to of 29987

Rocket Scientist can you explain why the dilution would be 90% and not 100% ? This is a timely question for me as I hold stock in GSTRF but hold no debt. I am considering bailing on the equity, possibly buying LOR, most likely buying RMBS and waiting for 6 months or so to see what reorganizes. So what is the motivation for the debt holders to leave anything for the current equity holders? It would seem 1) GSTRF is bankrupt in the sense it cannot pay its debt 2) GSTRF is bankrupt in the sense it cannot sell its assets for more than its debt 3) All debt is senior to all equity Therefore: The value of GSTRF, which is unfortunately less than the debt, will be divided pro rata among debt holders, and equity holders can feel good about the fact that the law prevents the debt holders from going after them for the NEGATIVE equity. ********* Anyway, this seriously is a question. I know very little about this stuff. What would the reason be that the bondholders should leave ANYTHING for the stockholders? Thanks for any insight, Ralph